Skyhawks Sports Camps Franchise Costs & Fees
Date of Incorporation: 1979
Franchising Since: 2007
Headquarters: Spokane, Washington
Business Description: Skyhawks Franchise Group, Inc. (SFG) is the franchisor. The franchisor offers franchises for “Skyhawks Businesses” and “Super Tots Businesses.” “Skyhawks Businesses” provide camps (for children ages 3-16), and after school programs, classes/clinics and leagues (for children ages 6-16) in baseball, basketball, cheerleading, flag football, golf, lacrosse, soccer, tennis, track & field, and volleyball using a proprietary system.
Franchise Offer: The franchisor offers franchises for Sports Academy Businesses. The franchisor uses the term “Sports Academy Franchise” to refer to the specific franchises, in this case a “Skyhawks Franchise.”
Financial Assistance: The franchisor does not offer direct or indirect financing. The franchisor does not guarantee franchisees’ note, lease or obligation.
Training and Assistance: Before opening the Sports Academy Business, franchisees (if franchisees are an individual) or their managing owner (if franchisees are an entity) and, if applicable, their designated manager must attend and successfully complete to the franchisor’s satisfaction the initial training program that is being provided for the Sports Academy Business that the franchisee purchased. After franchisees successfully complete the Initial Training Program and after they open their Sports Academy Business, the franchisor will spend up to 2 days with franchisees in their territory to train and assist them in marketing the services of their Sports Academy Business and up to 2 days with franchisees in their territory to assist them in the training of their staff. The Initial Training Program comprises approximately 16 hours at the franchisor’s headquarters in Spokane, Washington, or such other location that the franchisor designates. The On-Site Training comprises approximately 24 hours in the franchisee’s territory, or such other location that the franchisor designates. The managing owner, designated manager, independent contractors and employees must attend and satisfactorily complete various training courses the franchisor periodically requires at the franchisee’s cost and at the times and locations the franchisor designates. In addition to participating in ongoing training: (a) each year franchisees will be required to attend an annual meeting of all franchisees and pay a convention fee if the franchisor holds an annual meeting of all franchisees, and (ii) during the first year after franchisees opens for business, they will required to have at least one employee (but up to 10 employees) attend at least one of the franchisor’s staff and program training sessions, and pay a per-person program fee.
Territory: The Franchise Agreement for the Sports Academy Franchise grants franchisees a protected territory to operate a Sports Academy Franchise based on the geographic area and population properties within that area and other relevant demographic characteristics. For any Territory, the franchisor will grant only 1 license for a Skyhawks Franchise and 1 license for a Super Tots Franchise. If franchisees purchase a Tier 1 Franchise, their Territory will have a population of 150,000 or more, and if franchisees purchase a Tier 2 Franchise, their Territory will have a population of less than 150,000. The population statistics used in determining the Territory will be based on numbers derived from the current U.S. Census report and supplemented with other information available, such as zip-codes.com.
Term of Agreement and Renewal: The length of the initial franchise term is 7 years with option to renew for up to 4 additional successive 5-year terms, if the franchisee has complied with all the provisions of the Franchise Agreement.
Obligations and Restrictions: The Sports Academy Franchise shall be managed by franchisees, or if they are an entity, by one of the owners who is a natural person with at least a 51% ownership interest and voting power in the entity (Managing Owner). The franchisor will allow franchisees to appoint a designated manager (Designated Manager) to run the day to day operations of the Sports Academy Franchise. The Designated Manager must successfully complete the Initial Training Program. If franchisees replace a Designated Manager, the new Designated Manager must satisfactorily complete the Initial Training Program at the franchisee’s own expense. Franchisees must sell, or offer for sale, only those services and products authorized by the franchisor and which meet its standards and specifications. Franchisees must sell, or offer for sale, all types of services and products specified by the franchisor. The franchisor reserves the right to establish minimum and maximum resale prices for use with multi-area marketing programs and special price promotions.
Estimated Number of Units: 80
|Name of Fee||Low||High|
|Initial Franchise Fee||$12,250||$24,500|
|Fixtures and Furniture||$0||$500|
|Computer Hardware and Software||$0||$1,300|
|Supplies and Equipment||$2,000||$10,000|
|Business Licenses and Permits||$0||$3,000|
|Additional Funds - 3 months||$8,000||$11,000|
|Type of Fee||Amount|
|Royalty||The greater of 9% of gross revenues or the minimum royalty.|
|Brand Building Fund Contribution||Up to 2% of the Gross Revenues.|
|Local Advertising Payment||The difference between the amount franchisees spent on local advertising each quarter and their required local advertising expenditure (3% of Gross Revenues).|
|Local and Regional Advertising Cooperative||An amount established by cooperative members, up to 2% of Gross Revenues.|
|Additional Training or Assistance Fees||The then-current fees (currently $500 per day); plus travel and other expenses.|
|Interest and Late Charges||$50 late payment charge per occurrence; plus the lesser of 0.5% interest of the unpaid amount per week or the maximum amount allowable by law.|
|Payment Service Fees||Up to 4% of total charge.|
|Program Processing Fee||$3 per participant.|
|Insufficient Funds Charge||$100 per occurrence.|
|Failure to Submit Required Report Fee||$100 per occurrence and $100 per week.|
|Management Fee||$250 per day, plus costs and expenses.|
|Audit Expenses||Cost of audit and inspection, any understated amounts, and any related accounting and legal expenses (the franchisor estimates this cost to be between $1,000 and $12,000)|
|Transfer Fee||50% of the then-current Initial Franchise Fee.|
|Successor Franchise Fee||25% of the then-current Initial Franchise Fee.|
|Insurance for Franchisees||The franchisor’s costs plus a 20% administrative fee.|
|Convention Fee||The then-current fee (currently, up to $395 per attendee per year), plus travel expenses.|
|Staff and Program Training Fee||The then-current fee (currently, up to $395 per attendee per year), plus travel expenses.|
|Replacement of Franchise Operations Manual||$1,000|
|Supplier and Product Evaluation Fee||Cost of inspection (estimated to be approximately $100 to $500)|
|Unauthorized Advertising Fee||$500|
|Indemnification||Varies under circumstances.|
|Additional Support||$3,500 per year or $85 per hour.|
|Promotional Package Fee||Varies depending on merchandise.|
|Customer Issue Resolution||Reasonable costs the franchisor incurs for responding to a customer complaint, which varies.|
|Professional Fees and Expenses||Varies under circumstances.|
|Technology Fee||The then-current fee (currently $100/month).|
|Liquidated Damages||Varies under circumstances.|
The above information has been taken from the FDD of Skyhawks Sports Camps. Year of FDD: 2016
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